Job Management Setup  

         

Presented  By:  Carolyn  Johnson  

   

2014  SedonaOffice  Users  Conference   Job  Management  Setup  Marco  Island,  Florida   Presented  By:  Carolyn  Johnson  

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Table  of  Contents    

Job  Costing  Accounting  Methods  ...........................................  3  Job  Setups  .............................................................................  5  

Financial  Setups  ..................................................................................................................  5  Job  Management  Setup  Processing  ................................................................................................  5  Install  Company  ..............................................................................................................................  6  Job  Type  ..........................................................................................................................................  7  Non-­‐Financial  Setups  ..........................................................................................................  9  Job  Tasks  .........................................................................................................................................  9  Job  Status  ......................................................................................................................................  10  Job  Phase  ......................................................................................................................................  11  Labor  Tasks  ...................................................................................................................................  12  Commission  Types  .........................................................................................................................  13  

   

2014  SedonaOffice  Users  Conference   Job  Management  Setup  Marco  Island,  Florida   Presented  By:  Carolyn  Johnson  

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Job  Costing  Accounting  Methods  In  the  world  of  SedonaOffice,  the  term  Job  Costing  refers  to  accounting  for  Revenue  and  Expenses  which  are  related  to  a  Job  in  order  to  determine  the  profitability  of  the  Job.    There  are  various  Job  Costing  Accounting  Methods  available  within  the  SedonaOffice;  ultimately,  the  method  or  methods  your  company  will  implement  will  depend  upon  the  preference  of  your  company  or  advice  from  your  company’s  accounting  professional.    There  is  no  correct  or  incorrect  method;  after  evaluating  all  the  available  choices,  only  your  company  can  decide  what  will  work  best  in  your  own  business  environment.    Job  Costing  Accounting  Methods:  

• Immediately  recognize  –  Recognize  Job  Revenue  and  Expenses  as  they  occur.  • Use  WIP  –  Accrue  Expenses  into  Work  in  Process  accounts  and  recognize  only  when  a  Job  

Invoice  is  produced.  • Accrue  All  -­‐  Accrue  both  Revenue  and  Expenses  until  the  end  of  the  Job.  • Percentage  of  Completion  –  Corrects  distortions  to  recorded  Revenue  based  upon  Job  Costing  

Estimates.  

Immediately  Recognize  When  selecting  this  method,  when  any  expense  is  posted  which  is  linked  to  a  Job,  that  amount  is  recorded  immediately  to  the  Actual  Expenses  of  the  Job.    When  a  Job  Invoice  is  posted,  the  Income  is  posted  immediately  to  the  Job.    

Use  WIP  When  using  the  WIP  method,  when  any  expense  is  posted  which  is  linked  to  a  Job  Number,  those  amounts  will  record  to  the  WIP  Accounts  you  have  setup  for  Parts,  Labor,  etc.    WIP  accounts  are  balance  sheet  accounts.    When  a  Job  Invoice  is  produced,  by  default,  the  same  percentage  of  the  Job  being  invoiced  is  used  to  relieve  any  amounts  in  the  Job’s  WIP  accounts.    For  example,  if  you  produce  a  Job  Invoice  for  40%  of  the  Job,  40%  of  any  amounts  in  the  Job  WIP  will  posted  to  your  Cost  of  Goods  Sold  accounts.    

                         

Notes  

2014  SedonaOffice  Users  Conference   Job  Management  Setup  Marco  Island,  Florida   Presented  By:  Carolyn  Johnson  

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Accrue  All  The  Accrual  method  is  designed  to  post  both  Revenue  and  Expenses  in  WIP  accounts  as  Expenses  or  Job  Invoices  are  posted.    When  a  Job  is  closed,  the  amounts  previously  invoiced  will  move  to  the  Revenue  accounts  associated  with  the  Invoice  Items  that  were  invoiced,  and  the  previously  posted  Job  Expenses  will  move  to  your  specified  Cost  of  Goods  Sold  or  Expense  accounts.    Percentage  of  Completion  The  percentage  of  completion  method  is  used  to  more  correctly  present  your  Job  Revenues  for  a  given  accounting  period.    Using  this  method  requires  accurate  estimates  for  Revenue  and  Expenses.    Each  month  a  report  is  generated  to  determine  whether  Jobs  have  been  under  or  over  invoiced  based  upon  how  much  of  the  Job  has  been  invoiced  to  date  and  the  estimated  expense  left  to  be  incurred.    Based  upon  the  review  of  the  Over/Under  Report,  you  will  need  to  make  over/under  billings  billing  journal  entries  every  month  so  that  you  have  accurate  monthly  financial  statements.    These  journal  entries  should  be  reversed  the  following  month  because  the  following  month  your  work  in  process  will  be  different  and  you  will  have  different  over/under  billings  amounts.        

The  Job  Costing  Accounting  Method  may  be  one  type  used  for  any  type  of  Job  or  can  be  determined  by  the  individual  Job  Type.    Some  companies  use  one  Job  Costing  Accounting  Method  for  residential  Jobs  and  a  different  type  for  larger/commercial  Jobs.    It  is  all  a  matter  of  preference  to  your  company.    Once  you  have  determined  your  Job  Costing  Accounting  Method,  the  corresponding  setups  are  easy.                                  

Notes  

2014  SedonaOffice  Users  Conference   Job  Management  Setup  Marco  Island,  Florida   Presented  By:  Carolyn  Johnson  

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Job  Setups  Your  Job  Setup  tables  are  configured  based  upon  the  Job  Costing  Accounting  Method  that  will  be  implemented.    There  are  three  main  Job  Setup  tables  that  control  which  G/L  Accounts  are  used  for  posting  Job  transactions:  

Financial  Setups  

Job  Management  Setup  Processing  o Material  WIP  o Material  Cost  of  Goods  Sold  (COGS)  o Labor  o Commissions  o Overhead  

               

Notes  

2014  SedonaOffice  Users  Conference   Job  Management  Setup  Marco  Island,  Florida   Presented  By:  Carolyn  Johnson  

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Install  Company  o Material  WIP  o Miscellaneous  WIP  o Labor  o Overhead  

   

                                   

Notes  

2014  SedonaOffice  Users  Conference   Job  Management  Setup  Marco  Island,  Florida   Presented  By:  Carolyn  Johnson  

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Job  Type  o Material  WIP  o Material  Cost  of  Goods  Sold  (COGS)  o Miscellaneous  WIP  o Labor  o Commissions  o Overhead  

 

         

2014  SedonaOffice  Users  Conference   Job  Management  Setup  Marco  Island,  Florida   Presented  By:  Carolyn  Johnson  

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Notes  

2014  SedonaOffice  Users  Conference   Job  Management  Setup  Marco  Island,  Florida   Presented  By:  Carolyn  Johnson  

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Non-­‐Financial  Setups  There  are  several  non-­‐financial  type  setup  tables;  some  are  required  and  others  are  optional.  

Job  Tasks    (required)  Job  Tasks  are  linked  to  Job  Types;  each  Job  Type  must  contain  at  least  one  Job  Task.    A  Job  Task  is  a  major  milestone  during  the  process  of  a  Job  for  which  you  want  the  responsible  party  to  sign-­‐off  as  being  complete.    Job  Tasks  also  control  when  you  are  able  to  invoice  a  Job.    

                       

Notes  

2014  SedonaOffice  Users  Conference   Job  Management  Setup  Marco  Island,  Florida   Presented  By:  Carolyn  Johnson  

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Job  Status    (required)  Job  Statuses  are  assigned  to  Job  Tasks  in  the  Job  Type  setup  table  and  describe  where  a  Job  is  in  the  process  of  being  complete.    Job  Statuses  may  describe  the  responsible  department  for  the  current  Job  Task  or  the  current  event  (task)  that  is  awaiting  sign-­‐off.    

                             

Notes  

2014  SedonaOffice  Users  Conference   Job  Management  Setup  Marco  Island,  Florida   Presented  By:  Carolyn  Johnson  

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Job  Phase    (required)  Job  Phases  are  used  to  indicate  various  stages  of  a  Job.    You  must  setup  at  least  one  Job  Phase  that  will  be  used  for  Job  Invoicing  purposes.    

                                     

 

Notes  

2014  SedonaOffice  Users  Conference   Job  Management  Setup  Marco  Island,  Florida   Presented  By:  Carolyn  Johnson  

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Labor  Tasks      (optional,  but  recommended)  Labor  Tasks  are  used  in  various  areas  of  Job  Processing:  

• Entering  Job  Costing  Labor  Estimate  • Scheduling  Job  Appointments  • Manually  entering  Job  Timesheets  

 

   

                             

Notes  

2014  SedonaOffice  Users  Conference   Job  Management  Setup  Marco  Island,  Florida   Presented  By:  Carolyn  Johnson  

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Commission  Types    (optional)  SedonaOffice  has  the  capability  to  automatically  calculate  and  post  Job  Commission  based  on  four  basic  methods  or  to  manually  post  commissions  to  Jobs  according  to  your  company’s  commission  structure.    You  may  enter  commissions  for  informational  purposes  only  or  flag  commissions  to  post  to  the  general  ledger.    The  only  exception  to  this  rule  is  when  using  Gross  Profit  Commission  Types;  these  will  always  post  to  the  general  ledger.    Gross  Profit  When  using  this  Commission  Type,  the  commission  amount  (if  any)  will  be  posted  when  the  Job  is  closed.    The  program  takes  into  account  all  amounts  invoiced,  less  all  expenses  to  determine  the  Gross  Profit  of  the  Job.    Based  on  the  Commission  Setup  of  the  Salesperson  on  the  Job  and  the  Job  Type,  the  appropriate  commission  will  be  calculated  on  the  Gross  Profit  value.    Estimated  Profit  When  using  this  Commission  Type,  the  commission  amount  (if  any)  is  calculated  based  on  the  Install  Charges  and/or  Parts  that  will  be  invoiced  less  all  Estimated  Expenses.    Based  on  the  Commission  Setup  of  the  Salesperson  on  the  Job  and  the  Job  Type,  the  appropriate  commission  will  be  calculated  on  the  Estimated  Profit  value.    Non-­‐Recurring  When  using  this  Commission  Type,  the  commission  amount  (if  any)  is  calculated  based  on  the  Install  Charges  and/or  Parts  that  will  be  invoiced.    Based  on  the  Commission  Setup  of  the  Salesperson  on  the  Job  and  the  Job  Type,  the  appropriate  commission  will  be  calculated  on  the  total  Install  Charges  and/or  Parts  for  the  Job.    Recurring  When  using  this  Commission  Type,  the  commission  amount  (if  any)  is  calculated  based  on  the  Recurring  Charges  that  will  be  invoiced  for  the  Job.    Based  on  the  Commission  Setup  of  the  Salesperson  on  the  Job  and  the  Job  Type,  the  appropriate  commission  will  be  calculated  on  the  total  Monthly  Recurring  Charges  value.                      

Notes  

2014  SedonaOffice  Users  Conference   Job  Management  Setup  Marco  Island,  Florida   Presented  By:  Carolyn  Johnson  

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